Update on Marijuana Company of America's Oregon Hemp Project
ESCONDIDO, Calif., May 22, 2020 /PRNewswire/ -- MARIJUANA COMPANY OF AMERICA INC. ("MCOA" or the "Company") (OTC: MCOA) provides an update on its joint venture hemp project in Scio, Oregon, operated through Covered Bridge Acres (CBA).
The hemp farm has remained in operation through the Coronavirus pandemic as allowed by the State of Oregon. The CBA team is taking all necessary precautions required to operate in a safe and responsible manner. Fortunately, the farm is of significant size to enable the team to spread out widely throughout the property while carrying out their daily activities to prepare the farm for the 2020 cultivation.
Since the acquisition of the Scio farm in 2018, the CBA team has grown high CBD hemp, for the sale of both biomass and flower. In light of the current market conditions for these products due to overproduction in 2019, and slower than expected sales due to the pandemic, CBA has decided to change its production focus for 2020. This year, CBA will focus on producing a high quality CBG (Cannabigerol) flower in its greenhouses. This "artisanal grown" CBG flower will supply the smokable flower market, which has seen an increase in demand for quality CBG flower, and has continued to hold its price in light of the current pressures in the CBD market .
The strain that will mainly be grown is referred to as "CBG-1". This is a cultivar that has had extensive work in developing the perfect phenotype and has been back bred to produce an average CBG content of 22%, while having a total THC content of no more than 0.3%. Greenhouse cultivation was chosen for this project to ensure the highest quality of hemp is being grown. The greenhouses will also allow the team to better control the growing climate and protect the plants from any end of season rains that typically occur in this region of the Willamette Valley toward the end of the growing season. After the current crop is harvested in the fall, the CBA team will complete the buildout of all greenhouses so that there can be year round growing operations on the farm.
The hemp will be grown utilizing a Screen of Green (SCROG) cultivation method which implements horizontal trellis work that allows the average plant to produce 80-90% colas (tops) which are then trimmed to produce the final product of smokable buds. To further enhance this growing method, CBA will implement a high-quality nutrient schedule aimed to boost the plants vegetative growth and develop very dense, aromatic buds for the final product. These nutrients should ensure that the plants will develop to full mature fruiting and have exceptional terpenes. CBA's goal is to produce the most superior final product, making it a leader in the smokable CBG flower market. The current market for top quality smokable CBG flower remains significantly higher than CBD flower of similar quality.
CBA Sales Update - Some initial sales have been completed on the 2019 biomass however other sales have been delayed due to current pandemic conditions. The CBA team is continuing to pursue these sales where possible. The team also continues to assess additional value-added products that can be produced and marketed utilizing the Company's biomass and oils, thereby maximizing the value that the Company can receive for its inventory.
Global Hemp Group (GHG), the Company's JV partner in CBA, is extremely sad to announce the passing of Charles Larsen, GHG's President and CEO and co-founder of MCOA. Mr. Larsen was a visionary and pioneer in the hemp industry in the United States, and a strong believer in the disruptive potential of hemp. He will be sorely missed by his colleagues at Global Hemp who extend their sincerest condolences to his family. Curt Huber, the GHG's current CFO and Director will assume the role of President, CEO and Chairman of the Board. Mr. Huber has been a Director of GHG since 2014 and has been involved in development and day to day operations of the Company's Scio Oregon hemp project since its inception in early 2018.
Further details about the Company's financial results are available in its annual report on Form 10K, which will be available in the investor relations section of the Company's website at www.marijuanacompanyofamerica.com.
About Marijuana Company of America Inc.
MCOA is a corporation that participates in: (1) product research and development of legal hemp-based consumer products under the brand name hempSMART™, which targets general health and well-being; (2) an affiliate marketing and retail sales program to promote and sell its legal hemp-based consumer products containing CBD; (3) joint ventures and acquisitions of business entities engaged in the growth and sale of hemp and cannabis products in jurisdictions where cultivation is legal; and (4) the expansion of its business into ancillary areas as market opportunities in this segment mature and develop.
Legal Status of Cannabis
While legalized in California for recreational and medicinal use, cannabis remains a Schedule 1 drug under the Controlled Substances Act (21 U.S.C. § 811) and illegal under the federal law.
This news release contains "forward-looking statements," which are not purely historical and may include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as "anticipate," "seek," "intend," "believe," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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SOURCE Marijuana Company of America, Inc.
Released May 22, 2020